AVAX: Here’s why bulls could target or bypass the $14 supply zone

Disclaimer: The info introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion

  • AVAX witnessed a 20% surge in worth in the final 10 days
  • AVAX’s demand in the derivatives market remained optimistic 

Avalanche [AVAX] surged by 20%, rising from $10.85 to $12.97 in the previous 10 days. Based on the each day charts, AVAX bulls could target an important supply zone. 

At press time, AVAX flickered pink and was buying and selling at $12.53. It had simply confronted a short-term worth rejection at $12.97. Similarly, BTC confronted rejection at $17.50K however could be bolstered if the US Consumer Price Index (CPI) announcement on January 12 favors conventional inventory markets. 

Such a BTC rally could increase AVAX bulls to beat the $12.97 hurdle and target this supply zone. 

Read Avalanche [AVAX] Price Prediction 2023-24

The $14.0 supply zone: Can the bulls attain it?

AVAX/USDT on TradingView

The Relative Strength Index (RSI) on the each day chart was at 57, a substantial degree above the 50-midpoint. It had risen from the oversold zone since the starting of the yr. This confirmed that purchasing strain had elevated steadily in the previous 10 days; as such, bulls had the higher hand.

Therefore AVAX bulls could try and push above the $12.97 degree and target the $14.0 supply zone, particularly if BTC breaks above the $17.50K mark. However, AVAX bulls could face intense opposition from sellers if it hits the supply zone. 

So traders with diamond fingers could wait and dump at this zone. Nonetheless, a powerful bullish BTC could attempt to push AVAX even above the supply zone, however bulls should overcome some further obstacles if it involves that. 

Are your holdings flashing inexperienced or pink? Check with AVAX Profit Calculator 

Alternatively, bears could acquire extra affect earlier than AVAX hits the supply zone and push the costs decrease. Such a downward transfer would invalidate the above bullish bias. The downtrend could be checked by the $11.73 or $10.85 help ranges.

AVAX noticed optimistic sentiment and demand in the derivatives market.

1673494402 107 AVAX Heres why bulls could target or bypass the 14

Source: Santiment

According to Santiment, weighted sentiment and Binance Funding Rate for AVAX/USDT pair remained on the optimistic aspect since 5 January. This confirmed that traders remained bullish on AVAX, and the demand in the derivatives market didn’t change regardless of a slight drop in worth at the time of writing. 

However, a decline in buying and selling volumes could undermine bulls’ uptrend momentum. Any uptick in buying and selling quantity alongside a bullish BTC could sign a serious rally towards the supply zone. Therefore, traders ought to monitor BTC actions.

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